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Facebook's Secret To Mobile Advertising Success: WiFi

There are nearly 500 million facebook users on their mobile devices currently. The question everyone keeps raising, including those who bought facebook stock anytime after the IPO, how is facebook going to monetize these users.

I have a hunch: Doing something nobody else can even come close to doing within the mobile advertising space. Now that facebook has all of our personal data, they have a huge opportunity now to leverage that data, but it also poses an incredible opportunity for digial marketers because of the fact click through rates are higher on mobile devices. (14% higher actually)

As users access facebook via their mobile devices, they're also accessing the site via different methods. They're not using their data networks, they're using WiFi. Initial estimates place WiFi traffic being over 50% of all web traffic by the end of 2016.

Why is that so important? Advertisers can't target consumers via WiFi. And if everyone is spending more of their time on their phone, on facebook and on a WiFi network, advertisers need a way to reach them.

Wireless carriers, like AT&T, Cricket & Verizon make it very easy for marketers to target users and provide more specific ads based on their user demographics - not so on WiFi. (and this is the reason why the wireless carriers want you on their data plan - besides making money off of your plan, they also make money knowing your demographics.)

So, how is facebook going to solve - and profit - from this?

Facebook can create targeted consumer segments with greater depth and effictiveness than a wireless carrier can. Add on their ability for rich data such as post-click/click-through actions and you have the foundation for true value and quality for mobile advertisers that blind networks alone can't provide. This will push advertisers from smaller mobile networks over to facebook.

I've mentioned it before - new mobile advertising solutions are needed; they will change the way in which we connect and engage with brands and their services. Facebook is positioned well simply due to the fact they have the most users and the most data.

What does this mean for car dealers?

New mobile advertising strategies are about to hit the industry square in the head. Understand your mobile traffic activity from your analytics and be prepared for significant changes in the way your reach your customers.

Mobile conversion rates from Moolah Media from lead generation campaigns with over 100 million clicks during May & June 2012:

Great info Eric. This is key. I have noticed just from my posts on Facebook that upwards of 50% are being accessed through a mobile device. I am not sure if it is the norm at this point but should definitely be an "eye opener" for those who do not have mobile in their sights. Thoughts?

Interesting hunch. I'd love to see the details and data if/when it comes to fruition, but I'd find it a lot more useful on networks other than Facebook. Those stats that you posted, of conversion rate by network, are those Facebook specific? Or simply general lead generation campaigns, from a variety of platforms?

Great info Eric and I had no idea that they weren't able to target if the user is on WiFi. I have read several articles in the last few weeks on mobile usage going through the roof (also seeing it on our website), and we all have to capitalize on it somehow.